Which of the following is NOT a valid reason for an insurer to contest a life insurance policy during the policy's first two years of existence?

The correct choice identifies a scenario that does not typically allow an insurer to contest a life insurance policy within the first two years after it is issued. Under Arizona law and generally in insurance practices, a misstatement of age can often be corrected rather than creating grounds for contesting the policy as a whole. If the insured's age is misstated, the insurer may adjust the benefits to reflect what the premiums would have been had the correct age been disclosed, rather than voiding the policy entirely.

In contrast, reasons such as suicide of the insured, illegal actions by the insured, and failure to pay premiums on time represent legitimate grounds for an insurer to contest a policy within the first two years. Suicide, specifically, is often subject to a suicide clause that allows insurers to deny coverage if the policyholder takes their own life within a specified timeframe. Illegal actions can also provide grounds for contesting a policy, as they may directly relate to the risk that the insurer assumes. Additionally, timely premium payment is essential for maintaining the validity of a policy; if premiums are not paid, the insurer has the right to contest due to non-compliance with the terms of the contract.

Understanding the specific provisions and limitations of policy contestability helps clarify why misstatement of